USD/ZAR is the ratio of the currencies of two different countries: US Dollar and South African Rand.
Definition
This currency ratio belongs to an exotic group. The ratio of this pair shows how many rands you can buy $ 1 for. Thus, in this case, the dollar acts as the base currency, and the national currency of South Africa is convertible. For this the quote is strongly influenced by several macroeconomic factors. The South African rad is influenced by the prices of precious metals, and the dollar is influenced by the price of oil and various political events.
Indicators of the currency pair
Since this pair belongs to an exotic group, in this case there is a large volatility. This fact is due to the fact that there is a smaller trading volume for exotic quotes. As for spread, then this indicator on average reaches 1000 items, during the period of unrest – 8000.
The peculiarity of the currency pair
The peculiarity of this of the currency pair is that during the trading process it is necessary to monitor other trading instruments: EUR/USD; GBP/USD; USD/JPY. This is necessary due to the fact that the presented trading instruments act as indicators of the USD/ZAR price.
Other information
At the moment, the South African rand is losing 20% to the dollar in this pair. This situation began to develop in 2013 due to the unilateral orientation of the South African economy.